1DELAVAL 2020/2021

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World trends

DELAVAL

BETTER DECISION MAKING THROUGH QUALITY DATADairy farms of the future will have sensors embedded into every stage of their production process and on every piece of equipment. The Internet of Things (IoT) is what brings all this technology together and will make it possible to operate more efficiently and sustainably.

IoT-enabled systems provide farmers with an enormous amount of data that they can use to make optimal decisions. In this way, ‘smart farms’ can increase dairy production while becoming more sustain-able by helping dairy farmers to do more with less.

DELAVAL

AUTOMATION IS KEY TO SUSTAINABLE FOOD PRODUCTIONDeLaval’s engineers are collaborating with farmers around the world to create automated solutions that enable ‘precision dairy farming’. This involves integrating advanced technologies into dairy farming practices in order to increase production efficiency, im-prove animal welfare and the quality of dairy products – and ulti-mately help make sustainable food production possible.

Automation also improves the quality of life for dairy farmers by reducing heavy labour and tedious tasks, from early mornings to late evenings. The farmers of the future will instead spend their time performing tasks such as analysing data and planning farm operations on their computers and mobile phones, and of course, have more time for their animals and families.

CONTENTS:

COMMENTS BY THE CEO 6

GLOBAL LEADERSHIP TEAM 8

THEME: FOOD SECURITY 10

HIGHLIGHTS 2020/2021 12

SUSTAINABILITY 14

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NUMBER OF EMPLOYEES DECEMBER 2020

4,724

7PRODUCTION PLANTS

14

DeLaval is a market leader and trusted partner for thousands of farmers around the globe – providing integrated milking solutions that are designed to improve dairy farmer production, as well as animal welfare and their overall quality of life.

WE LIVE MILK

STRATEGY

At DeLaval, our vision to make sustainable food production possible is at the core of everything we do. We pride ourselves on our ability to provide dairy farmers around the world with innovative solu-tions to ensure a successful dairy farming business.

We have refined our approach to sustainability to ensure it covers everything we do – both within our company and how we benefit our customers. Our sustainability model focuses on three main perspec-tives – Environment, Food and Animal Welfare, and Social and Economic.

PRODUCTS AND SOLUTIONS

As a company built on innovation, we constantly work to find ways of helping our customers, dairy farmers, do more with less by providing world-leading milking equipment and solutions.

DeLaval offers highly efficient system solutions for milking as well as farm and herd management, animal traffic control, feeding, cooling and manure handling. DeLaval customers can also choose from a wide range of services and consumables, including liners and tubes, farm supplies and original parts to en-sure milk quality and animal health.

By providing better conditions for animals, farm-ers can improve animal health and longevity while at

the same time maintain or improve farm profitability. A healthy animal provides more milk, at a better quality and for longer.

OUR CUSTOMERS

DeLaval’s customers range from family farms to en-terprise farms with thousands of cows. Regardless of size, we’re there to help every step of the way.

Every time we help a farmer find a way to pro-duce more milk from the same herd, we make food production more sustainable. This might involve in-troducing a new working method on the farm, a new parlour, improved hygiene, more data to make better decisions, and the promotion of healthier cows to increase their milking lifetime.

Americas EMEA Asia & Pacific

19% 58% 20%

Service and original parts

Adjacent 3%

20%

26%

Milking

Hygiene

36%

DELAVAL NET SALES BY PRODUCT SECTOR, 2020DELAVAL NET SALES BY GEOGRAPHY, 2020

Farm supplies

18%

6RESEARCH AND DEVELOPMENT

CENTRES

TECHNICAL TRAINING CENTRES

>100SALES IN

COUNTRIES

€1.1NET SALES 2020

BILLION

TECHNOLOGYResearch and innovation are central to the continued ability of DeLaval to support its customers. With seven R&D centres around the globe, we work closely with a worldwide network of farmers, academics, dedi-cated research facilities, scientists, sales teams and authorised dealers.

DRIVING ANIMAL WELFARE THROUGH TECHNOLOGY AND INNOVATION

Animal welfare has always been an important component of our sus-tainability work, while being fundamental to the financial profitability of dairies. DeLaval is increasingly drawing on technology and innovation to promote animal welfare.

“DeLaval offers a range of products, sensors and data analysis tools that promote a safe and comfortable barn environment and closely monitor the health and welfare of individual cows,” explains Cecilia Bågenvik, VP Animal Intelligence and Animal Welfare Solutions. “Our offering allows a proactive approach to preventative cow health to pro-mote productivity and the internationally recognised five freedoms of animal welfare.”

One example is sensors that measure different milk parameters to ensure quality and food safety, while verifying the well-being of individual cows. During 2020, DeLaval Herd Navigator 100, which is integrated into the DeLaval VMS™ V310 milking machine to monitor the repro-ductive health of cows, has been a commercial success by adding significant value to the farmer.

MARKET

GROWING NEED FOR DAIRY

Population growth, increasing income and dietary changes will contribute to the global consumption of dairy products increasing by 1.8 per cent per year until 2025.

LARGER FARMS

The ongoing consolidation of milk production and the creation of larger farms drives more efficient production, automation and data management technologies.

CHALLENGES IN PRODUCTION

Milk production challenges include the need to continuously increase yields and changes in agri-cultural regulation – including the availability of subsidies and grants, and access to capital and resources.

Demand for dairy products continues to grow as the world’s population increases, with the United Nations forecasting a global population of almost 10 billion by 2050. Major global market trends for DeLaval include:

MILK AND FEED PRICES

Imbalances between supply and demand lead to price volatility on milk and feed products, which ef-fect farm profitability and investments.

FARMER CHALLENGES

Our customers across the globe face four main chal-lenges: profitability, animal welfare, food safety and farm efficiency. Our strategy is created to help them meet those challenges. These challenges are often linked, for example improved animal welfare means happier cows, less medical cost and a higher milk yield, which results in improved profit for the customer.

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Record sales despite pandemic uncertainty2020 was a year that was remarkable for ev-eryone around the globe. For DeLaval, it was a year of new ways of working and new chal-lenges from the COVID-19 pandemic, but also a year of exceptional growth and extraordinary commitment from our employees under difficult circumstances.

We were impacted very early by the pan-demic at DeLaval as our factory in Tianjin, China, was forced to close early in 2020. By the time we re-opened, we had found ways of providing safe working conditions for every-one during the pandemic. The Chinese au-thorities even used us as a role-model for oth-ers in China. The lessons learned from this experience were then used in our factories, distribution centres and offices as the virus spread around the world.

We were able to adapt quickly to the chang-ing situation due to those early lessons but also due to the extraordinary efforts made by our staff. They were able to ensure a swift and safe transition to new ways of working while avoiding disruption to our operations. This smooth transition is one of the reasons we believe 2020 was our most successful financial year yet.

Increased growth and market shareThe underlying demand for our products in-creased during the pandemic. Automatic milk-ing has become even more relevant today given the difficulties of having personnel on farms. At the same time, farmers continue to produce milk as always and our aftermarket products experienced double digit growth in 2020. Net sales were 1.6 per cent higher than in 2019, making 2020 an unprecedented record year.

The effects of the 2019 transformation pro-gramme also benefitted us in 2020. The cost reductions from the programme were fully in effect in 2020 with for example a much leaner supply chain.

We experienced strong growth in every re-gion of the world in both capital goods and af-termarket products. In China and South East Asia in particular, a record number of large farm contracts were signed. At the same time, our overall market presence helped us to con-tinue to sell to all kinds of farms.

We also saw particularly strong sales among our range of rotaries for large farms. This was driven by self-sufficiency policies introduced in Asia, and in China in particular. The need for in-creased domestic food production was already an issue due to trade disputes but has become even more apparent due to the pandemic.

The success of the DeLaval VMS™ V310 continues with the addition of new innovations such as DeLaval RePro™ now integrated into a third of all our VMS™ V300s. Another inno-vation in recent years that was particularly well received during 2020 is the DeLaval Evanza™ milking cluster.

InnovationOur engineers also adapted quickly to their ‘new normal’ of working from home. They have managed to continue at the same pace when it comes to research and development. Our focus on innovation remains and the examples above illustrate this.

Market trendsThe major trends that we saw in 2019 remain despite the changes in place due to COVID-19. We have previously identified food safety, animal welfare, farm profitability and work efficiency as the four major challenges for our customers. The need for work efficiency and food safety were particularly evident in 2020 due to the pandemic. Even internally, we have had to adapt to main-tain work efficiency under new conditions.

Food securityThe pandemic has also highlighted another critical aspect of our business: food security. Both food safety and food availability are crucial for any functioning society and this became particularly clear in 2020. While the political

focus was preventing the spread of COVID-19, we know things would have been very different without the safe and secure supply of food.

Since everyone working in the food chain is essential for a functioning society, we needed to ensure that our factories remained open while protecting our staff and their well-being.

Food safety is another important aspect of food security that has always been a priority area for us and our customers. We are happy to have several solutions in place that improve food safety on farms, such as our teat-spray solutions and digital sensor solutions that en-sure clean milking lines.

QualityOur customers today have a very positive per-ception of the DeLaval brand in terms of the quality of the products and services we offer. Internally, we want to work more on ensuring high quality. This will not only help maintain our reputation but will also help us save time and improve productivity internally with less time spent on fixing issues that may arise.

SustainabilityAlmost a decade has passed since we set our vision ‘make sustainable food production pos-sible’. We were one of a small number of companies that put sustainability into the heart of our vision at that point. Today, we see that it has given us a head-start over many com-petitors and helped us to provide solutions that can ensure the long-term sustainability of dairy farms. We will continue to invest in new tech-nologies that lead to better animal welfare and higher productivity on farms. Dairy products are a food stuff with very high nutritional value, and are a great source of high-quality protein that is needed to feed the growing global population.

Internally, we are now stepping up our efforts on environmental sustainability. In 2020, we mea-sured the entire carbon footprint of our supply chain operations. This has given us much needed data that will help us reduce our own emissions in line with the UN Paris Agreement on Climate Change.

Outlook 2021We expected a certain degree of uncertainty in the market in 2020 mainly due to changing subsidy programmes such as Europe’s Com-mon Agricultural Policy and the effects of Brexit as well as similar subsidy programmes in the US and Asia. What we have seen is that these programmes have largely remained the same, which is good news for farmers as it creates greater certainty in the market.

We believe that this will create a more sta-ble market in 2021 for DeLaval even if there is still uncertainty due to the pandemic. We go into 2021 with cautious optimism and will be satisfied if we maintain our level of success in 2020.

DELAVAL COMMENTS BY THE CEO

“Farmers continue to produce milk as always and our aftermarket products experienced double digit

growth in 2020. Net sales were 1.6 per cent higher than in 2019, making 2020 an unprecedented record year.”

“We go into 2021 with cautious optimism and will be satisfied if we maintain our level of

success in 2020”.

New DeLaval CEO appointedThe Tetra Laval Group Board has appointed Paul Löfgren, President & CEO of DeLaval, effective April 1, 2021. The appointment follows the decision by Joakim Rosengren to step down from his position after 18 years as President & CEO and 35 years with the Tetra Laval Group.

Paul Löfgren, presently Executive Vice President Cluster Europe Middle East & Africa, joined DeLaval in 2012 and was appointed to his current position in 2016.

Löfgren, who is 51 years old, holds a Master’s degree in Mechanical Engineering from Chalmers University of Technology, Sweden.

After 18 years as CEO of DeLaval and 35 years within the Tetra Laval Group, I will leave my position on April 1, 2021. This is a timely moment for me to thank you, our customers, employees, dealers and partners, for our fan-tastic relationships over the past decades. I depart our company secure in the knowledge that our future is in safe hands. I am very pleased that the Tetra Laval Group Board has appointed Paul Löfgren as my successor. Paul is well respected by his colleagues, and well placed to support them and our custom-

ers in the years ahead. I am looking at my time in DeLaval with gratitude and pride. I will continue to look out for news about DeLaval’s innovations and customer successes (old habits are hard to lose). With that, I thank the Board for their continued commitment, engage-ment and support and I thank my colleagues and wish DeLaval a very successful future.

Joakim Rosengren

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DELAVAL GLOBAL LEADERSHIP TEAM

The Digital Services Unit leads DeLaval’s transition to offer more digital services to bring unique value to dairy farmers, dealers, partners and its own organisation. These new services will support customers in making better use of their equipment as well as farm and cow data, to run more sustainable and profitable dairy operations. They will support dealers and DeLaval to improve customer support and internal efficiency.

Cluster EMEA continues to focus on supporting customers with innovative solutions to help drive the development of more sustainable dairy farms. Special attention is given to customers seeking productivity gains by using new technology and automation to analyse data for improved farm efficiency. Services to help customers get the most out of their equipment, such as In-Service All-Inclusive™, are also important.

DIGITAL SERVICES CLUSTER EMEA

Jonas Hällman

Acting Executive Vice President Digital Services

Jonas Hällman

Executive Vice President Cluster EMEA as of April 1, 2021

The Supply Chain organisation focuses on creating efficiency and end customer benefits. The Supply Chain should combine our global ways of working with regional closeness, and data should be transparent across the entire supply chain. We will continue to optimise and redesign our global footprint – for both sustain-ability and transport cost reasons.

SUPPLY CHAIN

John-Erik Hermanson

Executive Vice President Supply Chain

Paul Löfgren

President & CEO as of April 1, 2021

This is how we operate

Joakim Rosengren

President & CEO

until April 1, 2021

Lars Johansson

Senior Vice President Corporate Communications & Sustainability

Johan Swahn

Senior Vice President Legal Affairs

Valerie Binner

Senior Vice President Human Resources

The Product Management & Development Unit has the responsibility to develop innovative and leading-edge solutions for dairy farmers around the world. The focus is on milking equipment, feeding and effluent handling, as well as various solutions for improved animal welfare and animal health, including smart solutions and technology (e.g., artificial intelligence) for cow monitoring and milk analysis.

PRODUCT MANAGEMENT & DEVELOPMENT

Magnus Berg

Executive Vice President Product Management & Development

Cluster Asia-Pacific covers a large geography with dairy farms ranging from small backyard farms, pasture-based systems, to very large farms with financial investors. This places different demands on the product assortment, channels and service capabilities. The main contributor to excellent customer service is outstanding products, top-most service presence, efficient channels, and high-level automation capabilities.

CLUSTER ASIA PACIFIC

Johan Ledel

Executive Vice President Cluster Asia Pacific

Cluster Americas aims to deliver a total customer experience by working as a team with its dealers – independent and owned. Innovative solutions to address farmers’ challenges of animal welfare, food safety, farm profitability and work efficiency are key. Specific focus areas include, growth- oriented herds, excellent channel management, optimise milk production cost and being easy to do business with.

CLUSTER AMERICAS

Fernando Cuccioli

Executive Vice President Cluster Americas

Christian Poggensee

Chief Financial Officer

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TETRA PAK OPERATIONSDELAVAL THEME: FOOD SECURITY

How do you verify milk safety and quality?In Germany for example, all our new installa-tions are assessed by a third-party to verify they are operating correctly and ensure food safety. We also have a certification process for our dealers’ technicians to ensure quality (VDMA certification).

How does the dairy industry promote nutrition around the world?Milk is one of the most important food stuffs, and is of huge nutritional importance to people all around the world – particularly for the growth and development of children. DeLaval, together with Tetra Pak, is involved in the Tetra Laval Food for Development programme, which es-tablishes dairy hubs to educate local farmers in emerging markets to help them increase their milk yields, cooperate and find markets for their products.

Does DeLaval help farmers avoid food waste?Besides helping farmers to produce effectively, our milking systems also help them ensure milk quality, which can significantly reduce food waste.

How will DeLaval continue to promote food security in the future?We will continue to lead the industry by continu-ously developing new and improved solutions, and working with our partners and farmers to promote food safety, increase milk yields and reduce waste. By being at the forefront of the industry, I strongly believe we will ensure the dairy industry in general is well positioned to continue to promote food security for people all around the world.

Unpasteurized milk is used to produce a huge variety of cheeses, with over 1,000 distinct types of cheese made in France alone. Cheese made from unpasteurized or raw milk is at a higher risk of being contaminated by bacteria that can pose food safety issues. This places greater demands on milking processes and overall milk quality management to promote high milk quality.

Market leading supplier for cheese producersIn France, DeLaval is the nationwide market leader in supplying dairy producers that pro-duce high quality milk for cheese production. It develops close relationships with dairy pro-ducers for cheese production and has a com-prehensive dealer network.

“Our ‘InService™ All-Inclusive’ concept pro-vides farmers with everything they need to

ensure high quality – from the preventative servicing of equipment to the delivery of con-sumables,” says Vincent Smagghe, Vice President Market Development and Sales Support at DeLaval EMEA. “DeLaval is unique in that we are the only company that designs, manufactures and delivers all the equipment, services and consumables farmers need through a customised and fully integrated multi-year contract.”

Boosting production and milk quality for French cheese productionFlorent Duclos is a dairy farmer that is part of a family-run agricultural civil society (ACS) that annually produces 1.4 million litres of milk with 135 Montbéliarde cows in the Auvergne-Rhône- Alpes region in south-eastern France. The ACS delivers milk for cheeses such as ‘Tomme de Savoie’, ‘Raclette de Savoie’ and ‘Emmental de Savoie’.

“Milk quality is essential to our business and was a driving factor for choosing DeLaval equipment, including three DeLaval VMS™ V300 milking systems,” explains Duclos. “Since switching to DeLaval equipment in early 2020, we have increased production as well as further decreased our cell count, which is fun-damental to milk quality. The V300 is an impor-tant part of this by providing automated milking and ensuring clean and dry teats.”

Please explain DeLaval’s approach to food security?At DeLaval, our dairy solutions and experts around the world enable farmers to optimise their operations and milk yields, which pro-motes food availability. We also have a pro-active beyond-compliance approach to food safety in order to ensure chemicals and bac-teria don’t end up in milk.

Could you provide some examples of how DeLaval promotes food safety?Our digital sensor solutions verify that all pip-ing in milking lines are clean and enable farm-ers to easily detect and remove milk deposits that can enable bacteria growth. DeLaval has produced very high-quality milk filters for around 50 years to ensure that nothing con-taminates the milk. Another example is our DeLaval VMS™ V300 robotic milking system, which is equipped with the unique PureFlow™ solution that cleans teats purely with warm water and compressed air.

Stephan Lais, Vice President Central Europe at DeLaval, talks about DeLaval’s and the dairy industry’s role in promoting food security in the world.

High-quality milk is essential for cheese production and DeLaval is the market leader in France for serving dairy farmers that deliver milk to cheese makers.

Food security – the DeLaval perspective

Securing business continuity in PolandWith four factories employing over 400 em-ployees, Poland is an essential country for DeLaval to maintain production and ensure employee well-being. Procedures during the pandemic included separating different shifts, enhancing cleaning procedures, social dis-tancing and mask wearing.

“We avoided COVID-19 outbreaks and clo-sures at our factories in 2020, with only 17 cases in total identified among our entire work-force,” says Katarzynska Dzusajew, Factory

Manager at DeLaval’s detergent factory in Wrocław. “This has maintained production and deliveries to our customers – in fact our factory set an output record in 2020 despite the pandemic.”

Maintaining supply chains in ChinaThe entire food industry in China was disrupted by COVID-19 in early 2020, but the situation was quickly brought under control. DeLaval worked actively to minimise disruption to its supply chain and customer deliveries.

“We created procedures to deal with the pan-demic together with support from DeLaval Group Management,” explains June Wang, Vice President Supply Chain Asia-Pacific. “We shared good practice internally, and asked our suppliers early on in the pandemic to prioritise us due to our importance in supplying the dairy industry.”

“I am proud that we have enabled our cus-tomers and farmers to continue their business during the pandemic, which contributed to food availability in society,” says Wang.

DeLaval has had a key role in ensuring food availability during the pandemic by maintaining business con-tinuity, and securing its supply chains and deliveries to farmers to allow them to continue their dairy opera-tions. We look at the experiences of two countries – Poland and China.

Ensuring food availability during the COVID-19 pandemic

Supporting high-quality cheese production in France

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TETRA PAK OPERATIONSDELAVAL HIGHLIGHTS 2020/2021

Calf hygiene box improves animal welfareThe new automatic hygiene box is designed for optimal calf hygiene and animal welfare – to give calves the best possible start in life, while reducing manual labour. It allows for a more natural drinking position for the calves and provides a programmable comprehensive clean up to four times per day. The hygiene box from DeLaval is an add-on for the DeLaval calf feeder CF500S and DeLaval calf feeder CF1000S. “The hygiene box is a smart and easy to use tool for farmers, helping them to focus on hygiene measures and keeping calves healthy,” says Ludo Bols, Feeding Systems Solu-tion Manager EMEA.

Sustainable packaging solu-tion reduces CO2 emissionsWe have implemented a more sustainable corrugated board packaging solution at our European distribution centre in Gallin, Germany. The solution reduced our CO2 footprint by 17 tonnes during 2020 and will decrease emissions throughout our supply chain. When fully implemented, the corrugated board packag-ing solution will save over 32 tonnes of material per year, equiv-alent to over 25 tonnes CO2 or 133 one-way flights from Stock-holm to Hamburg. Going forward, the same solution will be trialled and potentially implemented at our factories in Wroclaw, Poland and Tumba, Sweden.

Investing in the future of dairy farmingHamra Farm, DeLaval’s own innovation, testing, and exhibition centre, will be upgraded and expanded with the number of dairy cows more than doubling to 550 by 2022. The state-of-the-art upgrade will have a high focus on animal welfare and will demonstrate some of DeLaval’s most innovative solutions, such as four DeLaval VMS™ V300 robotic milking systems. “This gives us more opportunities to test and develop new solutions,” says Magnus Berg, Execu-tive Vice President Prod-uct Management & Devel-opment. The project is expected to begin in the spring 2021 and should be completed in the second half of 2022.

One of Japan’s largest dairy farms goes automaticThe Biggreen Masuhoro dairy near Wakkanai city in northern Japan, only began operations in May 2020 but is already one of the largest automated dairy farms in Asia. The farm currently has eight DeLaval VMS™ V300 to milk its herd of 360 dairy cows. The V300 systems significantly minimise the labour required for milking, which ensures employees can focus on repro-duction management and expanding the farm. With its 710 heifers, the production is expected to grow significantly in the coming years. The automated solutions are part of their plan to contribute to sustainable dairy production and revitalise the area.

Virtual farm tours and conferences during COVID-19 We normally organise customer farm visits to showcase our products and solutions. As this was not possible during the COVID-19 pandemic, we hosted several virtual farm tours and digital conferences from around the globe during the year. For example, dairy farmers were able to visit the farms of DeLaval customers via YouTube. We also used a virtual reality system that allows customers and employees to view our products without visiting a farm or a trade show. Digital conferences included one for French farmers on cow longevity and reducing heat stress without decreasing milk production.

New product releasesDuring 2020, new products with specific sustainability benefits included:

• DeLaval VMS™ V310 is the first milking system that automatically confirms heat and pregnancy during the milking process.

• DeLaval VMS™ V300 – our flagship milking robot was enhanced with an improved teat-spray function.

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TETRA PAK OPERATIONSDELAVAL SUSTAINABILITY

Helping the dairy industry become more sustainableAs a provider of products and services to dairy farmers all around the world, DeLaval is in a position to help the dairy industry work towards a sustainable future.

This means providing products and solutions that improve working conditions for farmers and ensuring that animals are well taken care of, while at the same time reducing the environmental impact on every farm and ensuring its long-term success. Our approach to sustainability has three main perspectives – Environment, Food and Animal Welfare, and Social and Economic.

EnvironmentWe are committed to reducing our greenhouse gas emissions in line with the Paris Climate Agreement, which calls for climate neutrality by 2050 in order to prevent global temperatures rising above 1.5°C. We have a long history of developing products and solutions that reduce the environmental impact of every litre of milk produced and im-proving efficiency and milk yield on farms.

Food and Animal WelfareFood safety is critical for all parts of the dairy value chain. We work with food safety through stringent compliance controls but also by pro-moting animal welfare. A healthy animal provides more milk, at a better quality and for more years.

Social and Economic We respect and advance human rights and create long-term economic growth without negatively impacting social or environmental sustainability. Our Corporate Governance framework and Code of Business Conduct guides us in this work. Through innovation we provide solutions to dairy farmers to make their lives easier and their farms more profitable whilst lowering their environmental impact.

DeLaval’s entire carbon footprint of its supply chain operations, including direct and indirect emissions, were measured during 2020. This has provided data to help reduce our internal emissions in line with the Paris Climate Agreement from 2021 and beyond.

VOCs (Volatile Organic Compounds) 10%

22 tonnes CO2e avoided at our Gallin distribution centre in Germany by reducing packaging waste.

We have eliminated the use of plastic bubble bags in trans portation.

Separating rainwater from wastewater at our Drongen chemicals plant in Belgium will create a more efficient purification process.

All our European operations will only source renewable energy from wind and water from 2021.

Our factories and distribution centres are gradually switching to efficient LED lighting.

We have begun switching to solar lights in outside storage areas at several plants including Wroclaw, Poland and Tianjin, China.

WASTE

WATER

ENERGY

United Nations Sustainable Development Goals

Sustainability 2020The carbon footprint of our operations

In 2020, our supply chain’s estimated emissions was 234,381 tonnes CO2e. The emissions calculations were made based on the Greenhouse Gas Protocol (GHG) Standards and include Scope 1, 2 and 3 emissions. Direct materials such as metals, plastics and chemicals account for the bulk of our emissions.

Total emissions

234,381 tonnes CO2e

Distribution of CO2 emissions per area

where DeLaval can have an impact

Direct material 71%

Total packaging 11%

Transport 11%

Facilities 5%Travel 2%

Supply Chain CO2 footprintIn the first half of 2020, the CO2 emissions for DeLaval’s worldwide operations were calculated as part of a master thesis by students from the KTH Royal Institute of Technology in Stockholm. They created a calculation model that we can use to measure our footprint in the coming years, and can be used to assess how our footprint might change by simulating scenarios. “We now have a clearer picture of where to focus our improvements when it comes to contributing to our global emission targets,” says Lars Johansson, Senior Vice President, Corporate Communications & Sustainability.

DELAVAL 2020/202116

DELAVAL INTERNATIONAL AB

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GUSTAF DE LAVALS VÄG 15

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+46 (0)8 530 660 00

WWW.DELAVAL.COM